Split happens. Kids learn.

Spend, Save, Give Split Chart

Splitting funds between accounts earmarked for specific purposes is a valuable personal finance habit to learn.

New Year’s is the perfect time to introduce splits to the kids — or to revisit allocations if you’re already splitting.

Not using splits yet?

Consider adding another card for your child dedicated to something other than spending. Maybe an emergency fund card, or a charitable giving card, or a long term savings card with a generous parent-paid interest rate.

Pro tip 1: You can activate additional cards right after you order them. No need to wait the 7 to 10 days for the physical cards to arrive. That way, they’ll be visible and available for splits and card-to-card transfers immediately.

Pro tip 2: If you put any significant amounts on the new cards, lock them until they arrive to keep the balances safe.

Pro tip 3: Keep all but the spending cards safely tucked away in your desk drawer. Cards just come along for the ride with each prepaid account. No need for the kids to be waltzing around with cards they aren’t using for purchases.

Already splitting your child’s allowance or chore payments between accounts? The New Year is a good time to revisit those allocation percentages.

Wondering what others are doing in the split department? Here’s the latest average allocation data for FamZoo families who split:

  • Spending: 61.1%
  • Saving: 29.2%
  • Giving: 9.7%

So 60/30/10 would be a very typical Spend/Save/Give allocation choice.

That said, don’t be swayed by stats alone. Every kid and every situation is unique.

In fact, consider letting your kids pick the allocation themselves rather than dictating it for them. Often, their choices will surprise you. Pleasantly. 🙂

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